The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-10-24
CLEVER FINANCIERING.
How q Literary Lawyer Lifted Baukiu
Firm Out of q Scrape.

How q Literary Lawyer Lifted Banking
Firm Out of Scrape.
New York Special.
Wall street is talking about feat achieved
by y. s., of Dale during the recent disturb
ances relative to the control of Baltimore 81
Ohio property and the Cincinnati, Hamilton &
Dayton railroad. 81. s., of Dale" as'is pretty
we'll known now, is Mr.. Fred Stimson. lawyer
who disguised his literary work because he
feared that his standing an attorney would
be prejudiced if it were known that he was
INDUCING in light fiction. He was evidently
impressed with the general idea that literary
fellows have no heads Tor business. and preferred
to be associated in the public mind with the bar
rather than with authors Mr.. Stimson was the
attorney for Kessler s. Co., Wall street bankers,
who had loaned heavily to Henry S. Ives e. Co,
while that scatterbrain concern trying 10
buy the Baltimore & Ohio railroad with nothing.
The crash came, and kessler % Co, with many
other houses found themselves facing what ap
peared to be dead loss on most of their loans.
Some OF them were OF course secured by
good stock. which was sold at a satlsfac-
tory figure. but there remained a
great amount of Cincinnati, Hamilton 81
Dayton stock which was counted as of the most
doubtful value. The idea that a syndicate
headed by Drexel, Morgan e Co. would be
formed to take charge of the property was in the
air, but it was not probable that this or any
other syndicate would pay for the securities
held by Kessler & Co. as much as had been
loaned upon them. 1t was emineutly desirable
to get out Of the matter at profit il possible,
and the bank would have been satisfied to get
out with loss of very great amount. Mr..
Stimson thought he saw way to clear
a profit, and he accordingly institute the
series Of auction sales OF the securities
which caused much talk and
fuss during the progress of the negotiations
looking to the forming of the syndicate. 1t will
De remember that mono of the sales
tually transpired. The time and place were ad-
vertised in the due form, and at the proper mo-
ment the auctioneer mounted the block before
crowd of interested and speculative buyers.
Then the auctioneer was called down before
bid had been made, and the announcement was
put out that the sale had been post
poned The postponement in each case
was made for cash consideration given by
those to whom the formation of
the syndicate was a vital necessity, and
the cash did not represent payment on the
debt. but simply part of a trade, the price
paid for the postponement of the SALE In at
least of these cases the cash consideration
was So, 900. The racket was continued, and
when finally the syndicate was formed. Kesser
& Co. disposed of ali their securities to it at such
postDoning the auction sales they netted $l2 OOO.
1t is pretty good fnauciering that would
take any concern out OF the Ives
tanglement at anything short Of loss.
and the responsible party in this case
was 81. s., of Dale.n the literary man. He is
man of medium height and rather commonplace
in appearance. Hs speaks with a marked hesit-
ancy of utterance, pauslng between words,
searching his brain for the most common express
man little endowed with oratorical OR even con-
versational powers But in forensic argument
he always makes his point clear after stumbling
through sentence. and in planning a case he
seems De fully equipped with resources In
spite of his literary attainmentS